Value in mining tiddlers

As the market rally has made big-name stocks look fully priced, Citigroup has turned its analysis to the rats and mice corner of the stock exchange, where it sees a few good opportunities. In particular, small resources stocks look undervalued, it argues. “We continue to see relative upside in small resources from both the top-down and bottom-up point of view." But the move up may not come until the second half of the year and may depend on improved growth signals from the US and China. The sector is trading at an average discount to valuation of 29 per cent, Citigroup argues, and it picks AWE, Gryphon Minerals, Medusa Mining and Mount Gibson Iron.